Cursor International executes projects and collaboration activities across several industries.
By John Lee.
Shell is reported to be still in the process of evaluating the viability of the $11-billion Nebras petrochemical complex in Basra.
The project was designed to produce 1.8 million mt/year of various petrochemicals, using naphtha as a feedstock.
Last year, Reuters reported that Saudi Basic Industries Corp (SABIC) was in talks to join the project, but according to S&P Global Platts there has been no update on the progress of these talks.
(Source: S&P Global Platts)
Intertek, the UK-based assurance, inspection, product testing and certification company, has announced the launch of the first independent crude oil, fuel testing and petroleum products laboratory in Iraq.
The new hydrocarbon laboratory, located in the port of Khor Al Zubair, will support the increased demand for quality assurance solutions in the petroleum industry across Iraq and will soon be offering octane engine fuel testing of gasoline for the first time in the country.
The launch of the 1,300 square feet laboratory allows Intertek to offer its services in this fast-growing market and in this highly strategic location. Khor Al Zubair incorporates industrial areas that are home to several petrochemical and other companies that will benefit from the proximity of the laboratory services to their operations. The nine jetties in the port of Khor Al Zubair are vital for fuel imports and exports in Iraq and enable direct access for crude carriers, refiners, distributors and trade companies.
Based within SKA Energy’s new oil storage terminal, the laboratory represents a significant investment in the Iraq oil and gas industry. Offering a wide range of services for the petroleum and related industries, the laboratory will deliver sample testing, and services for the downstream oil and gas and aviation sectors.
It will also provide detailed crude oil, naphtha and gasoline quality analysis and testing, which helps clients maintain or improve fuel quality to meet commercial and regulatory specifications. The facility will offer 24/7 operations and trouble-shooting support.
Matthew Skinner, Intertek Regional Managing Director Gulf and Pakistan, said:
“As the demand for Assurance services in Iraq grows, we are delighted to have achieved an industry first in opening this laboratory.
“Our new facility in Khor Al Zubair allows us to cater for the needs of numerous parties operating within the oil and gas industry in Iraq, providing our customers with systemic Total Quality Assurance Solutions. Local companies can now obtain lab reports to help them assess their fuels in accordance with industry international standards, at a shorter turnaround time.”
(Source: Intertek)
By John Lee.
Oil Minister Thamer Al-Ghadhban met on Tuesday with Nhat Ozdemir, Chairman of the Board of Directors of Turkish conglomerate Limak.
The minister said he was keen to develop the energy sector through cooperation with international companies, noting the presence of promising opportunities in Iraq.
Mr Ozdemir said his company wants to cooperate with the Ministry of Oil in the development of the energy sector in the country.
(Source: Ministry of Oil)
By John Lee.
Iraq’s Ministry of Oil has announced interim oil exports for February of 101,387,615 barrels, giving an average for the month of 3.621 million barrels per day (bpd), down from the 3.649 bpd exported in January.
These exports from the oilfields in central and southern Iraq amounted to 99,120,006 barrels, while exports from Kirkuk amounted to 1,753,373 barrels, and from Qayara 514,236 barrels.
Revenues for the month were $6.168 billion at an average price of $60.834 per barrel.
January export figures can be found here.
(Source: Ministry of Oil)
Iranian President Hassan Rouhani will travel to Iraq on March 11 for an official visit.
Heading a high-ranking delegation, the Iranian president will be visiting the Arab country at the official invitation of Baghdad.
It will be Rouhani’s first official visit to Iraq during his tenure.
On Monday, Iranian Deputy Foreign Minister Abbas Araqchi met with Prime Minister of Iraq Adil Abdul-Mahdi in Baghdad to make arrangements for Rouhani’s forthcoming trip.
The Iranian president’s visit would come against the backdrop of Tehran’s efforts to boost its foreign trade in the US sanctions era.
Iraq’s foreign minister said recently that his country is “not obliged” to abide by sanctions imposed by the US against Iran and would be pursuing options to continue bilateral trade.
President of Iraq Barham Salih paid a visit to Tehran in November 2018 with a ranking delegation for a series of political and economic talks.
Speaking at a joint press conference with his Iraqi counterpart at that time, Rouhani said the value of trade and economic interaction between Tehran and Baghdad stood at around $12 billion, adding that the two neighbors have the potential for a $20-billion trade target.
Earlier this month, governors of the central banks of Iran and Iraq signed an agreement to develop a payment mechanism aimed at facilitating banking ties between the two neighboring countries.
According to governor of the Central Bank of Iran Abdolnaser Hemmati, Iran is going to open euro and dinar-based accounts to process transactions for trade in oil and gas.
Describing Iraq as Iran’s major partner, Hemmati said the two countries have agreed to make the banking ties much stronger.
He also stated that Iraqi companies can reciprocally open accounts in Iranian banks and conduct transactions in dinar.
In December 2018, Chairman of Iran-Iraq Chamber of Commerce Yahya Ale-Eshaq said the central banks of Iran and Iraq were finalizing negotiations to begin trade in their own currencies.
Iraq’s Foreign Minister Mohamed Ali Alhakim has made it clear that his country cannot cut off trade ties with Iran under the US sanctions.
(Source: Tasnim, under Creative Commons licence)
By John Lee.
Genel Energy has announced that approval has been given by the Kurdistan Regional Government (KRG) regarding the acquisition of stakes from Chevron in the Sarta and Qara Dagh (pictured) blocks, in the Kurdistan Region of Iraq.
According to a statement from the company, the acquisitions have now closed and Genel therefore has 30% equity in the Sarta PSC, with Chevron holding 50% and the KRG the remaining 20%. Final investment decision relating to Sarta phase 1A development has now been taken.
Phase 1A begins with two wells, recompleting the Sarta-2 well and placing the Sarta-3 well on production, both of which flowed approximately 7,500 bopd on test, and the construction of a central processing facility with a 20,000 bopd capacity. Another well is expected to follow within twelve months of first oil, and further production capacity will be added as the field is developed and production ramps up. First oil is expected in 2020, with a total cost to Genel estimated at $60 million to the end of 2020.
Genel has booked an initial 10 MMbbls of net 2P reserves relating solely to this preliminary phase of the project. Unrisked gross mid case resources relating to the Mus-Adaiyah reservoir only are estimated by Genel at c.150 MMbbls, with overall unrisked gross P50 resources currently estimated by the Company at c.500 MMbbls.
Genel now holds 40% equity in the Qara Dagh PSC and is the operator, with Chevron holding 40% and the KRG the remaining 20%. Work is underway on assessing the optimal location for the Qara Dagh-2 well, which is set to be drilled in 2020. Unrisked gross mean resources at Qara Dagh are currently estimated by Genel at c.200 MMbbls.
Shares in Genel Energy have risen 9 percent over the past 24 hours.
(Sources: Genel Energy, Yahoo!)
By John Lee.
A Chinese company has reportedly won a contract to build a natural gas liquids (NGL) plant in Basra.
According to Xinhua, China’s Petroleum Engineering and Construction Corporation (CPECC) signed the contract on Wednesday with Iraq’s Basra Gas Company (BGC).
As a result of the new plant, BGC will increase its gas production capacity by 40 percent.
The Basra NGL facility will be built in Ar-Ratawi area in west of Basra and is scheduled to complete at the end of 2020.
CPECC is a subsidiary of the China National Petroleum Corporation (CNPC),
(Source: Xinhua)
Deloitte report on Oil and Gas review in the Iraqi Kurdistan Region – Q3 of 2018
On Wednesday, the KRG Regional Council for Oil and Gas Affairs has published new verified data on the Kurdistan Region’s oil exports, consumption and revenues, covering the period from 1 July 2018 to 30 September 2018, after a review of the sector by the international “Big 4” audit and consulting firm, Deloitte.
The Regional Council for Oil and Gas Affairs acknowledges the positive feedback received from stakeholders, including the international community, and reiterates its commitment to the people of Kurdistan that the two international audit firms, Deloitte and Ernst & Young, will continue to independently review the oil and gas sector, inclusive of all the streams.
Deloitte’s report for the third quarter of 2018 is accessible through this link (PDF), in Kurdish, Arabic and English.
Frequently asked questions handbook (PDF) in Kurdish, Arabic and English to help readers better understand different sections of the report.
(Source: KRG)
By John Lee.
Iraq’s Ministry of Oil has announced final oil exports for January of 113,111,429 barrels, giving an average for the month of 3.649 million barrels per day (bpd), down from the 3.726 bpd exported in December.
These exports from the oilfields in central and southern Iraq amounted to 110,245,281 barrels, while exports from Kirkuk amounted to 2,315,389 barrels, and from Qayara 550,759 barrels.
Revenues for the month were $6.367 billion at an average price of $56.287 per barrel.
December export figures can be found here.
(Source: Ministry of Oil)
The Iraq Energy Institute (IEI) has issued its 2018 Annual Report, entitled “Riding the Oil Markets, Iraq’s Economy in Transition“.
In its summary, the IEI says:
“Iraq’s fortunes are once again highly dependent upon oil prices following a period where the government succeeded in stabilising expenditures, on the basis of IMF conditionality.
“This period was of course accompanied by the 2014-2017 war against the self-declared “Islamic State,” when Iraq was struggling through an existential conflict. During this difficult time, Iraq’s fundamental stability, on virtually every metric, was supported by the success of its energy sector.
“On that basis, 2018 carried good news for Iraq, not only due to rising oil prices. This report outlines some of the areas where oil and gas have truly contributed to energizing Iraq’s economy, looking at increasing gas utilization in southern Iraq, which now carries the real potential to alleviate Iraq’s electricity crisis.
“We examine growing cooperation between the Federal Government and the Kurdish Region of Iraq in the energy sector, which is increasingly based on a firmer legal footing with the passing of the 2019 budget law, which could in theory usher in a new era of Baghdad-Erbil relations.“
Please click here to download the full report.
(Source: IEI)